Industry News

Tight capacity puts pricing power in trucking’s hands as spot, contract rates rise

By February 12, 2021 No Comments

The trucking market is benefiting, as is every other freight mode, from the high demand for consumer goods in recent months that has led to an impressive surge in imports at ocean gateways. And once those containers land, it is trucks and rail that are responsible for getting them to where they need to be.

 

“This tightness is driven largely by the supply side, with ongoing congestion at some of the major ports and a driver shortage,” XPO Logistics Chief Strategy Officer Matt Fassler said on the company’s earnings call Thursday when talking about its brokerage business. “There has been some loosening in capacity from the seasonal peak, which helps us with procuring capacity for our customers.”

 

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